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Providence St. Mel. Consumer Economics Stock Market Game January 19, 2006. Process of Selecting Stocks RESEARCH! RESEARCH! RESEARCH!. Strategy based on “potentials” Not necessarily all blue chip stocks
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Providence St. Mel Consumer Economics Stock Market Game January 19, 2006
Process of Selecting StocksRESEARCH! RESEARCH! RESEARCH! • Strategy based on “potentials” • Not necessarily all blue chip stocks • Sought out corporations with known track records and with likelihood to show profit in the time frame allotted • Research by each member of team before buying decision, based on several variables including: • Corporate background • Stock growth profile • Value
Key Stocks in Our Portfolio • LOSERS • GameStop Inc. • Target Inc. • Expedia • WINNERS • Watsco Inc. • Google • Timberland • Caterpillar Inc. • SONY
STOCK PERFORMANCE • OUR TOP THREE • Watsco • Google • Timberland OUR PORTFOLIO
Factors Affecting Stock PerformanceGOOGLE VS. EXPEDIA: The Best and the Worst Performers The Best: GOOGLE • Leading internet information provider competing with stocks such as Yahoo, Amazon, and Microsoft • 99% of Google’s profit derived from its strategy of targeting technology advertising. • 12% of its advertising profit from Time Warner in the past year • Currently broadening its base by establishing online libraries and email resources. Sources for this slide: Munarriz, Rick Aristotle. “Google’s Next Buy.” The Montley Fool. 3 November 2005. <http://www.fool.com > 01 Jan 2006. 2. <http://finance.yahoo.com>
Factors Affecting Stock PerformanceGOOGLE VS. EXPEDIA: The Best and the Worst Performers The Worst: EXPEDIA • Online agency that arranges and organizes travel planning • During term of the project, earned ___% of our group’s profit • From October through November, experienced a constant decrease in profit, primarily due to seasonal fluctuations in travel patterns for individuals and businesses
What We LearnedINVESTING IS NOT A GAME BUT YOU STILL HAVE TO KNOW THE RULES! • Research! Research! Research! • Know your corporations’ histories and growth potentials before you invest. • Understand the workings of the market and the factors that enhance or impede performance. • Be an active and engaged investor, follow your investments and investigate all market upturns and downswings.
Acknowledgements • Team Members • Our Consumer Economics Teacher • Mr. Belkaoui • Providence-St. Mel Administration • Ms. Jeanette DiBella, Principal • Dr. Paul Adams, President • The Stock Market Game Sponsors